House Values
Hi Am hoping one of you smart Brownstoners can answer this question for me: Bearing in mind we are “past the days of real estate hoopla” What can one expect to gain each year on their house? Is it still 4% a year since the time you bought it. Is that compounded yearly? For example…
Hi
Am hoping one of you smart Brownstoners can answer this question for me:
Bearing in mind we are “past the days of real estate hoopla”
What can one expect to gain each year on their house? Is it still 4% a year since the time you bought it. Is that compounded yearly?
For example if you bought your house in 2000 for $500K what would it’s worth really be(minus upgrades)
Thanks in advance!
Quikaziod was spot on: Your house is worth what someone will pay for it. There is no simple linear projection when it comes to real estate. In 5 years, the value of a house in Lefferts Gardens or Victorian flatbush may rise quicker relative to what you bought it for than one on Prospect Park West.
PHFamily – exactly what I found too!
but if you put in your zipcode(mine is Park Slope) then magically they have all these buildings/condo values at crazy inflated prices like 3-4million.
weird!
wow- cyberhomes is incorrect! Their value of my house is almost 50% less than it should be……where do they get their data?
I see from your previous post that you’re a seller, so zillow and cyberhomes are somewhat irrelevant & and it comes back to “whatever someone is willing to pay for it
…Posted by: guikazoid”
Buyers are patient, lenders are cautious, so you gotta be very patient, or else you may have to accept that cyberhomes price. If you get 1.04^#years you’ve owned + something to account for major improvements, you might consider yourself lucky.
Predictions of value only work for the past, not the future. Expect nothing and be pleasantly surprised.
Bklnite – cyberhomes is awful! – oy it values my house at way under what i paid for it years ago!
they are nuts!
BHO must be running that site!
What agreed with what you said about 4% gain per year and not 15%!!!
In addition to those sites cyberhomes.com also has price estimates. From my checking, zillow seems to estimate on the high side.
If you’re projecting forward, there is variation by location, but I think that based on historical data, expecting house prices to go along with inflation is reasonable. 4% compounded annually is in the ballpark of what I would figure. Maybe lower near term, at least while we wait for deflation fears to be overtaken by hyperinflation.
Most of the world suspended disbelief for a while during the credit & housing bubble and started thinking that prices could go up 15% a year and double every 5 years, but obviously that wasn’t sustainable.
I have bunch of old iron pipes in my basement. Does it worth to bring them to the salvage yard on the way to Home Depot? Or I should save 15 minutes and leave them on sidewalk?
it is highly dependent on the area. average home prices in brokklyn sliding down a bit. Park Slope still going up. East New York going down.
You can see a lot of numbers on the trulia.com. Note that the average listing price is meaningless because listing price is not a sale price. Also notice that average sale price is meaningless because it does not account the side of the house. i.e. in Bensonhurst there is many condos built in place of old houses. It means, that builder buys old house on big lot for 800K, builds 6 condos and sells them for 400K eash. From “average” numbers point of view price of the house in this area went from 800K to 400K. or is down 50%. Looking at the price per squere feet may make more sense. Or you need to plot on the graph comparable sales at different points of time.